US EditionAt Least 20 B.C. Craft Breweries Shut Off Their Taps as Industry Cries for Tax Reform
Local breweries face higher taxes than foreign-owned companies, causing financial strain and closures; reform could reduce taxes by 70%, supporting reinvestment and growth, says B.C. Craft Brewers Guild.
- This year Nelson Brewing co-owner Kate Walker and other craft brewers urged the provincial government to reform taxation they say advantages foreign-owned firms, while Agriculture and Food Minister Lana Popham acknowledged the markup structure is under review.
- The 2015 tax overhaul established production-based mark-ups, and foreign-owned commercial companies pay a flat rate above 350,000 hectolitres, which the B.C. Craft Brewers Guild links to $9 million in annual rebates.
- Industry data show B.C. breweries expanded from 54 in 2010 to 30 brewpubs in 2025, with over 20 closures this year; Nelson Brewing Company projects 6,500 hectolitres but faces tax parity with larger producers.
- Walker argues a revenue-neutral tax change would cut Nelson Brewing Company's taxes by 70 per cent, freeing funds for reinvestment and staffing; liquor mark-ups contributed over $1 billion to provincial government revenue in 2023-24 despite a 5.3 per cent beer sales decline.
- Popham warned U.S. tariffs, increased competition, rising costs and falling consumption challenge craft brewers, pledging continued collaboration with the guild.
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